Abstract:
Tax audit is an activity or a set of activities performed by Tax auditors to determine taxpayer’s correct tax liabilities for a particular accounting or tax period. This study is aims to identify challenges of tax audit practice focusing on the case study of Arada Sub-City Small Tax Payers Office in Addis Ababa Administration Revenue Bureau.
The research employs descriptive research design. Besides, both quantitative and qualitative or mixed research approach is use to analyze by data collecting from primary and secondary sources. Primary data was collected by using survey method from the tax audit staffs and tax payers. In addition, the study area has 45 tax audit staffs and questionnaire will to distribute all of them to collect primary data for the research. Besides, from the 45 tax audit staffs of the study area, an interviewed is was done with six audit team leaders, one tax audit department head and the branch office tax affairs vice manager. These individuals are purposively selected for the interview because of their responsibilities in the office, their routine engagement with tax payers and as they also receives reports from other staffs under their supervision. In addition, to be quality data for the study five taxpayers who came to perform their case directly at the time was interviewed these individuals are Convenience selected for the interview because this is an easy and inexpensive way to gather initial data. In addition, ERCA Annual Reports and others published by ERCA and texts by others the similar studied are used as secondary information in the process of conducting this study. The descriptive statistical analysis with the help SPSS V23 was used to analyze the collected data. After carefully data analysis has been done the researcher would be presented the data obtained from questionnaire using frequency distribution and tables , figures, charts and diagrams and after this concluded the study result and recommended as general.
